Preferred Residences, a hospitality-branded membership and exchange programme for luxury shared ownership resorts offered by an operating business of Interval Leisure Group (Nasdaq: IILG), has signed an affiliation agreement with the private residence club at Essque Zalu Zanzibar. The eco-friendly property, which also includes a boutique hotel, is on the exotic island of Zanzibar off Africa’s northeast Tanzanian coast.

“We couldn’t be more delighted with the addition of Essque Zalu Zanzibar, the second Preferred Residences location in Africa,” said Darren Ettridge, senior vice president of resort sales and business development for Preferred Residences in Europe, Middle East, Africa, and Asia. “Our members will enjoy the resort’s ideal location and stunning ocean views, along with exceptional service and hospitality.”

Essque Zalu Zanzibar overlooks the turquoise waters of the Indian Ocean and its white sandy beaches and coral reefs. The club comprises 40 suites that feature a living room, spacious bedroom and bathroom, and terrace. The nine villas spoil guests with en-suite bedrooms, fully equipped kitchen, dining room, personal massage room plus plunge pool, private gardens, and terrace.

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Preferred Residences is proud to once again be a Platinum sponsor of the 11^th Annual Ragatz Associates Fractional Interest Conference scheduled March 14-16, 2011 at the historic Fairmont San Francisco. 

In addition, Preferred Residences is pleased to provide you with a special opportunity to attend this year’s conference and receive a 15 percent discount off the registration fee.  To receive this discount, enter promotional code “PR2011″ when registering online.

The Fractional Interest Conference has long been recognized as one of the most important and informative gatherings in the fractional interest industry on a global basis. The conference brings together developers, hoteliers, and service providers to network, discuss new opportunities, and build strategies for the future. 

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Resort Real Estate Event for the Fractional Interest Industry To Focus on Improving Business Performance in a Transitional Economy

Registration is now open for the 2010 Ragatz Associates Tenth Annual Fractional Interest Conference, a highly anticipated annual forum which will discuss recent and anticipated influences affecting this unique resort real estate industry. The conference is scheduled for March 29-31 at The Fairmont San Francisco and will be co-hosted by The Registry Collection.

“While the recent financial crisis has affected every element of the real estate market, in the long term, shared-ownership products such as fractional interests are likely to be the first to rebound,” says consulting veteran Richard Ragatz, Ph.D. and event host. “The key is for the development community to be prepared and properly positioned for the turnaround, which is certain to come.”

Like many experts in the resort real estate industry, Ragatz believes that today’s affluent consumer is becoming increasingly in sync with “green” influences – purchasing only the amount of vacation time they can personally use and financially afford.

Attending this year’s conference is critical to companies currently in the fractional interest industry along with those considering entering this highly specialized field. Conference attendees will learn how some companies continue to make sales in a transitional economy, as well as innovative marketing and sales strategies.  With many troubled whole-ownership resort real estate projects throughout the U.S. today, it is critical for developers of these projects to understand whether their project is appropriate for fractional interests. Ragatz says that his conference will respond to such concerns.

The 2010 conference will emphasize conducting business in the fractional interest industry in today’s economy.  Critical topics of discussion will include:
•    Are troubled whole-ownership resort developments appropriate for fractional interests?
•    The search for financing
•    Innovative marketing and sales strategies in a transitional economy
•    How affluent consumers make decisions in times of economic uncertainty
•    Insights and advice from industry experts

The conference should be of major interest to companies already in the fractional interest industry (including private residence clubs and destination clubs), and especially to companies considering entering the industry.  As in the past nine conferences, included will be formal presentations, panel discussions, and a series of small group break-out sessions. Last year’s conference attracted 450 participants from over 30 states and 12 countries.

The March 2010 conference will feature presentations from over 60 speakers, including representatives from the land development, hotel, finance, legal, internet and public media industries.  Speakers include representatives of Hyatt, Fairmont, Timbers Resorts, Preferred Residences, Ward Financial, Life Rich Real Estate, The Registry Collection, The Harrison Group, East West Partners, and the American Resort Development Association (ARDA).  A special luncheon speaker will be Ralph Bowden of Bowden’s Market Barometer.

Results from the 2010 Edition of Ragatz Associates State of the Fractional Interest Industry will be presented, describing current conditions of the industry in the United States, Canada, Mexico and the Caribbean. Current research on affluent consumers also will be presented.

Some 25 companies are again supporting the conference at various sponsorship levels. Platinum sponsors include Ballard Spahr, Baker Hostetler, Timbers Resorts and Preferred Residences. Gold level sponsors include ARDA, Weinstock & Scavo, Greenberg Traurig, and Robb & Stucky Interiors.

Registration for the conference is $850. For groups of two the fee is $750 each and for three or more it is $700 each. To make hotel reservations by phone, call 1-800-441-1414, and mention that you are attending the Ragatz Associates Fractional Interest Conference to receive the discounted rate.

For questions and registration information, visit www.ragatzassociates.com, or contact Sarah Winter at 541-686-9335 or info@ragatzassociates.com.

About Ragatz Associates
Ragatz Associates is internationally recognized as the leading consulting and market research firm in the resort real estate industry. The firm has conducted more than 2,500 studies in over 70 countries since its formation in 1974. It specializes in feasibility analysis and consumer research.

Los Altos Situated Within Casa de Campo Resort in La Romana

Preferred Residences™, a hospitality branded membership and exchange program for luxury whole and shared ownership resorts offered by a subsidiary of Interval Leisure Group (Nasdaq: IILG), today announced that Los Altos Club in La Romana, Dominican Republic, has joined its exchange network. Through this affiliation, owners participating in the rental program at Los Altos resort become members of Los Altos Club and have access to the membership and exchange privileges of Preferred Residences.

Designed by renowned architect Francisco Feaugas to reflect a gracious, tropical Caribbean style, Los Altos resort comprises 116 luxury villas and lofts. The residences are beautifully appointed with upscale finishes, elegant contemporary furniture, and set in lush gardens. They feature 10-foot vaulted ceilings, custom solid oak doors, travertine marble flooring, spacious living and dining areas, European-style kitchens with granite surfaces and stainless steel appliances, and oversized terraces.

“We’re very proud that Los Altos has chosen to join Preferred Residences,” noted David Gilbert, executive vice president of resort sales and marketing, Preferred Residences. “It is a distinctive property with best-in-class amenities and services, representative of the caliber of resort we envisioned when we launched the program.”

“With its award-winning design and high-quality construction, Los Altos offers all the comforts of an upscale residence and the extensive facilities of Casa de Campo, one of the finest and most complete resort communities in the Caribbean,” said Willy A. Bermello, AIA, AICP, developer of Los Altos and principal of BAP Development. “The prestige of the Preferred Residences brand is the perfect complement to our exceptional product.”

Among the wide array of amenities and activities that owners and guests can enjoy are a private beach, multiple international restaurants and bars–including Beach Club by Le Cirque, championship-level golf courses (Teeth of the Dog, Dye Fore, and The Links), Cygalle Healing Spa, fitness center, numerous tennis courts, an equestrian center, a polo field, a dude ranch, a shooting center for skeet and trap, a full-service marina, a day camp for children, and babysitting services.

Los Altos is adjacent to Altos de Chavón, a replica of a 16th century Italian village, with shops, restaurants, and numerous cultural attractions, including a 5,000 seat open-air theater.

In addition to the sales and marketing opportunities for developers, Preferred Residences offers owners “high-touch” exchange services and year-round leisure and lifestyle benefits tailored especially for discerning, affluent travelers. These include preferential pricing at participating Preferred Hotel Group affiliated properties worldwide, complimentary Prestige membership in Priority Pass™ airport VIP lounge program, personal concierge services accessible 24/7 online and via phone, discounts on the Delta AirElite private jet program, and complimentary annual membership in Hertz #1 Club Gold®.

About BAP Development
BAP Development was founded in 1999 by Bermello and engineer Luis Ajamil to address the demand for quality residential and mixed-use high-rise developments in South Florida. The company has been able to leverage the reputation and experience of its principals and the resources of its affiliated company, Bermello, Ajamil, and Partners, one of Florida’s largest architectural and engineering companies, to become one of the leading development firms in South Florida. BAP is continuing its expansion by identifying new locations with strong market potential throughout Florida, selected areas of the United States, and the Caribbean Basin.

About Preferred Residences™
Preferred Residences™ is a hospitality branded membership and exchange program for luxury fractional resorts, private residence clubs, and condominium-style hotels.  The program gives developers the opportunity to promote their upscale vacation residences within a network of exclusive accommodations and to deliver high-quality vacation experiences to owners of exceptional real estate. Members have access to a rich menu of benefits and services designed to enhance a sophisticated lifestyle. Preferred Residences is an alliance between Interval International, a leader in vacation ownership for more than 33 years and an operating segment of Interval Leisure Group, and the Preferred Hotel Group, representing more than 700 of the world’s finest independently owned hotels in over 75 countries.

Interval International, a leading global provider of vacation services, announced the promotion of Bryan Ten Broek to senior vice president of resort sales and business development. He reports to David Gilbert, executive vice president of resort sales and marketing.

In his new position, Ten Broek oversees the sales and service team who manages Interval’s resort relationships in the U.S., Canada, and Caribbean and plays the lead role in building the company’s developer client base in these regions.

In addition, he is responsible for the resort affiliation, service, and marketing of Preferred ResidencesTM, a branded membership and exchange program for luxury fractional resorts and private residences clubs, in the same territory.

Ten Broek also directs initiatives that enhance the scope of services Interval provides to its existing clients, develops third-party business relationships, manages participation in hospitality-related conferences, and pursues new business opportunities.

“Bryan has done an outstanding job growing our business in the regions he has managed and launching new programs that significantly enhance the value we add to our clients’ products,” Gilbert said. “His extensive knowledge of the sales, marketing, and operations aspects of our business will serve him well in this new role and I am confident that he will continue to excel.”

Ten Broek joined Interval in 1995 and has held a number of positions of increasing responsibility. Most recently, he was vice president of resort sales and service for the western region.

He has been an active participant in the American Resort Development Association (ARDA), the vacation ownership industry’s trade association, for more than 14 years and is currently a member of the research committee. He earned a bachelor’s of arts degree in political science from Northwestern University.

Interval International operates membership programs for vacation owners and provides value-added services to its developer clients worldwide. Based in Miami, Florida, the company has been a pioneer and innovator in serving the vacation ownership market for more than 33 years. Today, Interval has a network of approximately 2,500 resorts in more than 75 countries and offers its resort clients and about 2 million member families high-quality products and programs through offices in 26 cities in 16 countries. Interval is an operating segment of Interval Leisure Group, Inc. (Nasdaq: IILG), a leading global provider of membership and leisure services to the vacation industry.

An interview with David Clifton, managing director Europe, Middle East, Africa and Australasia for Interval International on his extensive worldwide experience in vacation ownership.

Tell us about some of the roles you’ve had in the vacation ownership industry and the challenges that you’ve faced in your career.

I’m very grateful to have had the opportunity to work in all aspects of the shared ownership industry for almost 30 years. I enjoyed being a developer and marketer during my days as Managing General Partner of Welk Park North (a joint venture between Welk Resort Group and Kemper Development) and Executive Director with Hilton Grand Vacations. And, I’ve thoroughly enjoyed working on the exchange side of the business for the past 12 years.

Having the chance to live outside of the U.S. since 1995 has been an incredible experience. While it took me a bit of time to recognize that the way I was used to doing business in the U.S. was not necessarily the best way to get things done abroad, I’ve learned to think out of the proverbial box to come up with creative solutions that fit each specific market. I’ve also had to learn as much as possible about all of the cultures throughout Europe, Middle East, Africa, Asia, and Australasia. I’ve found that while there are vast differences in each market, most people are fundamentally similar. Along the way, I have been blessed to discover so many new things and to meet so many incredible people.

What’s the best thing about living abroad?

Meeting people from different countries, learning about their customs and culture, and assisting them in their successful entry into our dynamic industry. It’s very rewarding to educate newcomers about what our business is and what it is not, and to help them become successful. It’s also gratifying to deal with the many seasoned professionals in each market who have been in the business for years, know the industry inside out, and are willing to share their understanding of local and regional cultures.

Dubai has been at the epicentre of the travel and tourism industry for the last five years. You’ve been in the unique position to have experienced the boom, the correction, and now its re-emergence. What’s it been like on the spot?

It’s been quite a ride … I believe I first visited Dubai in 2003 and moved there in March 2005. I was drawn to it by a number of things, including His Highness Sheikh Mohammed Bin Rashid Al Maktoum’s vision for the Emirate’s future, the warmth of its people, quality of its resorts, great weather and beaches, incredible restaurants, substantial airlift, and high quality of life – all of which made for tremendous potential for shared ownership.

When I moved into my apartment across the street from the future location of the Burj Dubai (being promoted as the world’s tallest building upon its completion), I vowed on the first day of every month (or as close to it as possible given my travel schedule) that I would set up my tripod and photograph this building as it was being built. It’s been magical to watch history being made as it went from a pile of sand to a structure that is now over 160 stories tall.

During this same period, I’ve also watched Palm Island, and so many other world-class projects, take shape as the speculative real estate market soared to stratospheric heights before the global meltdown that took place last year. Dubai’s real estate market, like many others, has experienced a material pullback since it peaked in the second quarter of 2008. The days of investors queuing up for hours, if not days, to buy properties off-plan with little regard for price, are over.

Today, a far more rational and sustainable thought process is the norm in this market. Real estate prices are now much more affordable, which is great news for the shared ownership industry. In fact, Dermarr Real Estate just purchased 30 completed units in the Bonnington Jumeirah Lake Towers with an option for
20 more. Dermarr and Arabian Falcon Holidays (its marketing company) have been very successful timeshare developers and marketers in the region and are long time Interval clients.

The government is very focused on getting more end-users to purchase real estate in the Emirate and many officials with whom I’ve spoken recently recognise how important the shared ownership sector could be in meeting their ambitious tourism objectives. With most of the speculators out of the market, many developers are now looking seriously at our sector as a solution for the current oversupply of inventory, just as others have done before them in other markets around the world. In my opinion, the real estate correction in Dubai was necessary and it will be good in the mid- to longer-term for both the Emirate and for our industry. After all, Dubai continues to have not only all the attributes of a very appealing shared ownership destination that I referred to earlier, but it is strategically located in proximity to hundreds of millions of middle-class consumers who are prime customers for our vacation ownership products.

What are some of the key ingredients for success in vacation ownership today?

No doubt, they are qualified lead generation that is cost effective, being able to provide attractive consumer financing, and getting your overhead in line with your sales volume. In this economic climate, consumers continue to want quality resorts located in highly desirable destinations, but some are looking for more affordable purchase options than in the past. A number of developers are now creating shorter-term products that will satisfy this segment of the market. More than ever before, sales and marketing must be targeted in areas where qualified families live and/or where they vacation. Maximum results are achieved by
those developers with cost-effective lead generation and the ability to offer a strong value proposition and a consumer financing programme for the client.

I also believe the foundation for sustainable growth in the shared ownership industry starts with well-balanced legislation that benefits all the stakeholders (consumer, developer, and government). This is the primary reason why Interval plays a leadership role in global regulatory matters in most major shared ownership markets.

How has the industry changed since you began your career?

Shared ownership was quite a new concept when I got into the business. Most people had little real knowledge about what timesharing was back then. The majority of programmes being offered were quite simple: a fixed unit for a fixed week. The physical product was also very different. Most developments were conversions and there were few purpose-built quality shared ownership resorts in existence.

Developers in the late 1970s and early 1980s were all independents with a great entrepreneurial spirit, but with little, if any, historical industry knowledge to fall back on. Today, most hospitality companies are in the business and a number of independent developers have created their own brands as well.

The consumer too has changed. Satellite television and the Internet have helped fuel the appetite to travel the world and learn about different cultures. I think this thirst for travel is now unstoppable. At the same time, product quality has improved, programmes are more flexible, shorter-term products are being created, and many companies have adopted sophisticated target marketing and counsellor selling techniques. This is all in keeping with our industry’s ability to adapt and evolve in an everchanging environment.

What this all adds up to is a product that’s enjoyed by a wide spectrum of consumers all over the world.

Many in vacation ownership view the industry as more resilient than other businesses during difficult times. Do you agree with this view?

Most of us recognize that the global economic downturn over the past 12 months has been difficult on almost all industries and ours is no exception. While consumers have continued to purchase the product, it has been at a slower pace than in the past. Developers who have been dependent on receivables financing have been affected and have had to pull back on their sales and marketing. We’re hearing, however, that some lenders might be ready to re-enter the shared ownership consumer financing arena, which will be good news for us all.

Because the whole-unit real estate market has screeched to a virtual standstill in many locations around the world, we’re seeing these developers look to our industry, as they have done during previous difficult times, as a potential solution for their current whole-unit real estate woes.

Although we still face some tough days ahead, I would much rather be in the shared ownership industry than in the conventional real estate business today.

We’ve seen diversity in the vacation ownership product range with fractional resorts, private residence clubs, and condo hotels alongside the traditional timeshare model. Which do you see as having the biggest future growth potential?

Traditional timesharing will continue to be the dominant sector within shared ownership. But, we see opportunities for long-term sustainable growth in other shared ownership products as viable alternatives to second-home ownership. To capitalize on this value proposition, Interval formed an alliance with Preferred Hotel Group to establish Preferred Residences, a branded membership and exchange programme for luxury fractional resorts, private residence clubs, and condo-hotels. While sales of these products have also been impacted by current market conditions, we’ve recently affiliated several resorts with Preferred Residences,
have a number in various stages of the affiliation process, and are actively pursuing quite a few leads.

Your solo fundraising motorcycle ride “Cruising for the Cure” was a great personal achievement. What was the most memorable moment?

It has to have been meeting all the great people. I will never forget their kindness and generosity as I travelled 24,000 miles and visited 49 states last summer to raise awareness and funds for breast cancer research and treatment. It totally rekindled my faith in mankind.

And finally, for such a world traveller, where do you call home?

Although I’ve had a home at Aviara in Carlsbad, California, for many years, these days I’m very happy to call Dubai home.

Iconic Lakefront Cottage-Country Resort Is Only Two Hours’ Drive From Toronto

Preferred Residences™, a hospitality branded membership and exchange program for luxury shared ownership resorts offered by a subsidiary of Interval Leisure Group (Nasdaq: IILG), today announced that The Cottages at Windermere House has joined its exchange network. The historic Windermere House Resort, located on Ontario’s renowned Lake Rosseau in Canada’s Muskoka Region, has been welcoming visitors for 140 years. 

Now, it is being transformed into a mixed-use property with a fractional component comprising new waterfront cottages.  A wealth of on-site amenities, including three restaurants, fitness center, beach, boat slips, spa, and golf at the adjacent Windermere Golf Course, completes the upscale experience.        
The Cottages at Windermere House will feature two- and three-bedroom units with living space ranging from 1,500 to 1,900 square feet. Residences will be furnished with an eye toward maintaining the high-end lake-house experience, with hardwood flooring, heritage-style lantern lighting, beamed ceilings, and stone-façade gas fireplaces. Fully equipped, state-of-the-art kitchens are planned to complement the over-sized dining room tables, which are designed for entertaining. The Cottages also will have screened-in three-season Muskoka rooms and large, open-air lakeview decks to maximize enjoyment of Lake Rosseau, where noted celebrities have vacation homes.

“This luxury resort is an impressive property and wonderful addition to the Preferred Residences network,” said David Gilbert, executive vice president of resort sales and marketing for Preferred Residences. “Its discerning owners and guests will appreciate the high-quality accommodations, first-class services and amenities, and spectacular setting.”

 “Muskoka is an incredibly beautiful and scenic part of Canada that reminds visitors of the gracious vacation styles of another era. Our iconic resort is very much a part of that tradition and now, with the addition of The Cottages at Windermere House, a
broader clientele also can take ownership in this special experience,” said Paul Jeffrey, chairman of Windermere House Resort. “We’re excited to be affiliating with the exclusive Preferred Residences program, so that our owners can enjoy additional vacation experiences and leisure and lifestyle benefits.”

In addition to the sales and marketing opportunities for developers, Preferred Residences offers owners “high-touch” exchange services and year-round leisure and lifestyle benefits tailored especially for sophisticated, affluent travelers. These include preferential pricing at participating Preferred Hotel Group affiliated properties worldwide, complimentary Prestige membership in Priority Pass™ airport VIP lounge program, personal concierge services accessible 24/7 online and via phone, discounts on the Delta AirElite private jet program, and complimentary annual membership in Hertz #1 Club Gold®.

Fractional real estate professionals were brought together on Thursday 23rd and Friday 24th April in London to attend the second annual Fractional Summit.

The Summit was held at the prestigious Hilton Metropole and organised by Fractional Life with headline sponsorship from Registry Collection and sponsors: FOC – Fractional Ownership Consultancy, Citadel Trustees Ltd, DCP International, Castello di Casole – Timbers Resorts, Preferred Residences, First American Title and yooPhuket. The event attracted over 210 fractional property developers, brands and service operators together with leading property journalists.

The theme of this year’s conference ‘Fractional ownership: the rewards and opportunities’ ensured a good turnout with delegates from all around the world including Denmark, Italy, Spain, France, Portugal, Republic of Ireland, USA, Cyprus, Turkey, Mexico, Thailand, South Africa, Dubai, Russia, Australia, Cape Verde, Lebanon, India, Croatia and the United Kingdom.

The event gave fractional professionals from around the world an overview of the current state of the industry in Europe with a two-day programme of presentations and panel discussions.

One of the recent causes for concern, which is linked to making consumers more aware of fractional ownership is the lack of a clear definition of the product, with different developers using different terminology in their marketing materials. On this subject, Preben Vestdam, Principal and CEO of Valhalla Associates discussed industry definitions of luxury fractional ownership, Destination and Private Residence Clubs and the requirements of each. He spoke about and highlighted the main differences between Destination Club, PRC, fractional ownership and timeshare and ran through everything the potential fractional developer who may be considering adding one of these to his mix of products needs to know, from business models in usage plans, preferred locations, pricing methodology, and success and failure factors.

Despite managing to achieve increased positive press coverage over recent months, there’s no denying that the fractional property market in Europe is very much in its infancy, so it was very inspiring to hear from Sarah Rezak who is a senior consultant from Ragatz Associates. Sarah presented figures to show the size of the US fractional industry and how the marketplace has grown to be worth $1.6 billion dollars in 2008 (down from $2.3 billion dollars in 2007). What is interesting is that many UK and European consumers buying trends tend to follow shortly behind the US. Currently in the US there are 138 Private Residence Clubs and 12 Destination Clubs. Sarah shared with us some interesting statistics about the satisfaction levels of fractional owners – 87% of Fractional Owners and 95% of Private Residence Owners said that knowing what they know now about their purchase, they would do it again.

Following on from an interactive panel session talking about the fractional hotspots around the world we were introduced to Marc Koerts, Managing Director, Avenio Prieuré and Marina Palmerio of Timbers Resorts. At a time when many real estate developers are considering whether to change the mix of their property and may be considering a shared ownership offering we heard from two very different fractional developers, Marc Koerts shared with us his journey from being a self-confessed ‘fractional novice’ last year to, 12 months on successfully launching his mixed use “Avenio Prieuré” fractional ownership development in Provence, France – his resorts were featured in Perspective Magazine in June 2009 (available online at www.theperspectivemagazine.com). Marina Palmerio presented Timbers Resorts’ and Castello di Casole’s vision. She explained that for many, their dream is to own their own home in Tuscany, Italy and that Castello di Casole offers one of Tuscany’s most remarkable villas and surrounding estates, but also the option of whole or fractional ownership.

Nick Turner, Vice President & Head of New Developments – Europe for Registry Collection discussed the growing trend of converting traditional real estate into Fractional Ownership and gave an overview of where the fractional industry is today. His session highlighted that there are 4 main typical destinations ski, golf, beach and urban. The cost of a fractional ranges from $99,200 to $247,000 and the units are fairly large – 1670 sq ft – 2500 sq ft. The largest potential growth areas would likely be Spain, Italy, Portugal, UK, France, Cyprus and Croatia. He went on to explain how the exchange programme with Registry Collection which is the largest in the world can add huge benefits to the Fractional offering by giving the fractional owner access to 160 of some of the world’s most exclusive resorts.

As a break from concentrating on the property arena, Richard Thomas, Director of Marketing for Jet Republic gave us an amazing insight into the world of Fractional Jet Ownership. He told us about the Jet Republic mission: to revolutionise private jet travel with dramatically improved service in the air and on the ground.

Despite the current economic climate he said that they have put their money where their mouths are and have just placed the largest order in European history – 110 Learjet 60 XRs valued at $1.5 billion. The Learjet60XR is the best in its class flying higher, faster and further.

Chris Allen of Citadel Trustees spoke about the importance of getting the right structure to support the right product, right from the start. He explained the importance of getting it right from the start with a structure which supports the product from a legal, operational, sales and marketing perspective. A structure that combines flexibility for future product development with complete security for added product credibility. Doing this is both cost effective and financially logical for buyer and seller and offers each an exit route. Linked to this was a presentation from Andrew Warren, Partner, Anne Taylor, Partner from Irwin Mitchell law firm which is based in London. They spoke about the important and controversial issue that the fractional industry is currently governed by the Timeshare Directive which is part of the Consumer legislation under review at the moment in the ECC. The timeshare (Fractional) contract is a contract of accommodation use for the duration of more than one year by which a consumer acquires the right to use one or more overnight accommodation for more than one period of occupation.

The current directive states that Fractional Ownership cannot be sold as an investment. Further stipulations are that pre-contractual information should be provided in good time before the consumer is bound by any contract or offer and specific information to be contained in timeshare, long term holiday product, resale & exchange contracts. The contract should be in writing in the language of the Member State in which the client is a national. Cooling off period is extended to 14 days from the day of conclusion of the contract. If the withdrawal form is not provided, the period of withdrawal expires after one year and fourteen days. There is a total ban on advance payments, provision of guarantee, reservation of money on account and acknowledgment of debt during withdrawal period for all contracts.

Greig Holbrook from Oban Multilingual gave us a fascinating insight into the multilingual Search engine optimisation. He explained how SEO works and gave us examples of what we needed to do to increase our rankings on Google but given that not everyone searches in English or even uses Google there were other things you could do to increase your rankings. Things such as Keyphrases: Cultural variants, Search Engines, content, Domain names/localisation, Global Social Media, Growth in penetration per country.

Claude Attala – Global Managing Director of Northcourse released the findings of the first ever research paper dedicated to the fractional property market in Europe. The study, titled “Europe: Trends In Fractional Real Estate 2009” identified the following: there are 90 fractional products in Europe in the form of private residence clubs and fractional properties. Over 70% of fractional properties are located within a mixed use environment. More than 60% of these are located near the beach or a golf course, although there has been a recent growth in urban properties. Italy was chosen by those interviewed as the most desirable location followed closely by France. Portugal is also popular, followed closely by the UK, Turkey and Spain.

Of those interviewed, 33% said they were likely and 13% very likely to purchase a fractional property in the future. The remaining 54% said they were not likely to purchase a fractional at present, which highlights the need for increasing awareness of the fractional product.

We then heard some very interactive panel discussions, ‘Live’ Fractional Practical Exercises, Capturing the high net worth fractional Consumer and connecting with different cultures.

Speakers and panellists were upbeat about the future of the fractional industry despite the economic downturn, pointing at a sustained growth curve in the European fractional property market over the next few years.

The newly-launched Fractional Life Summit Awards were also presented, amongst them was Avenio Prieuré, a luxury resort development company in Provence and member of The Registry Collection, scooping the Fractional Life Award for Innovation and Excellence, the top accolade in the fractional industry.

Delegate Quotes:

“In sharp contrast to the general economic news, there was an excited buzz as new projects and current fractional successes were discussed and planned” – Eric Gummers, Howard Kennedy

“You’ll have over 300 delegates at the next one – I hope you have the space” – Peter Matthews, Cave Creative

“I really enjoyed the fractional ownership conference, expected less, very impressed, will do a lot of business from it” – Vincent Barbera, Destination Sicily.

“Great fractional property conference – it served its purpose and I enjoyed all the speakers. I’ll definitely attend next year” – Chris Bannister, GRM Solicitors.

“I think it’s been one of the best conferences and feel very positive. I would have liked to have more representatives there, will bring more next year” – Richard Thomas, Jet Republic.

“I enjoyed the conference very much, very positive feedback, panel discussions were great. I got to meet everyone I wanted to” – Maurizio Bisicky, Marriott Vacation Club International.

“It’s the first event I’ve been to in a while that has exceeded my expectations. I noticed many new faces, both developers and suppliers coming into the industry. In a time when most markets are looking inwards, it was great to see people actually making plans to enter or expand their operations in the fractional market” -
Ioannis Verdelis, Select Ownership.

Will be St. Thomas’ first enviromentally sustainable development.

Preferred Residences™, a hospitality branded membership and exchange program for luxury shared ownership resorts, today announced that Flagberry Hill Club and Resort in St. Thomas, U.S. Virgin Islands, has joined its exchange network. Offering breathtaking views from its 950-feet above sea-level location, the resort is being designed and built using green materials to make it the island’s first environmentally sustainable development.

Plans for the mixed-use resort include a 40-unit boutique hotel, 10 whole ownership condominium units, and 80 three-bedroom fractional villas. Designed by OBM International, one of the premier architectural firms in the Caribbean, the fractional unit interiors are expected to range from 2,300 to 3,900 square feet. Each will feature gracious living and dining areas with lavish finishes, fully equipped kitchens, high-end electronics and entertainment systems, and a private swimming pool.  In addition to these upscale features and amenities, when possible the property will be powered by wind, solar and photovoltaic energy sources, and will employ water conservation technologies.

“Flagberry Hill demonstrates our commitment to preserving the environment through sustainable development and responds to the growing consumer demand for green luxury accommodations,” noted Glenn Elskoe, president, and Dorothy Elskoe, owner, of Wintdots Development LLC. “Through our affiliation with Preferred Residences, we will be able to position our product as one of the Caribbean’s most desirable luxury properties and set it apart from others in the region.”

“We are delighted to launch the Preferred Residences program in the Caribbean with this outstanding property that promises to take luxury to a new level. Visitors will enjoy first-class accommodations in a tropical paradise and be treated to unparalleled service and amenities,” said David Gilbert, executive vice president of resort sales and marketing, Preferred Residences.

Flagberry Hill will offer owners and guests on-site amenities that include a clubhouse with gourmet dining, a full-service spa, a fitness center, and access to several nature trails available throughout the property. Each unit will be assigned a vehicle for guest use and 10 sailing yachts will be available to them as well. 

Visitors will be able to take an aerial cable car ride from the resort to Paradise Point, one of the “must see” attractions in the U.S. Virgin Islands. The St. Thomas Skyride whisks passengers 700 feet above sea level in seven minutes giving them panoramic views of Charlotte Amalie Harbor and neighbouring islands. Once at Paradise Point, they can enjoy an observation deck, complete with a restaurant, bar, tropical bird display, nature trail, and a gift shop.
 
“The government and people of the U. S. Virgin Islands can be proud of this development because it demonstrates the Virgin Islanders’ abilities to be involved in something unique that will bring jobs and international recognition to the nation. It will create more than 250 construction jobs and employ over 200 full-time local residents when complete,” added Mr. Elskoe.

In addition to the sales and marketing opportunities for developers, Preferred Residences offers owners “high-touch” exchange services and year-round leisure and lifestyle benefits tailored especially for sophisticated, affluent travelers. These include preferential pricing at participating Preferred Hotel Group affiliated properties worldwide, complimentary Prestige membership in Priority Pass™ airport VIP lounge program, personal concierge services accessible 24/7 online and via phone, discounts on the Delta AirElite private jet program, and complimentary annual membership in Hertz #1 Club Gold®.

About Preferred Residences™
Preferred Residences™ is a hospitality branded membership and exchange program for luxury fractional resorts, private residence clubs, and condominium-style hotels.  The program gives developers the opportunity to promote their upscale vacation residences within a network of exclusive accommodations and to deliver high-quality vacation experiences to owners of exceptional real estate. Members have access to a rich menu of benefits and services designed to enhance a sophisticated lifestyle. Preferred Residences is an alliance between Interval International, a leader in vacation ownership for more than 30 years, and the Preferred Hotel Group, representing more than 700 of the world’s finest independently owned hotels in over 75 countries.

Interval International, a leading global provider of vacation exchange services, and Preferred Residences™, the recently launched hospitality branded membership and exchange programme for luxury shared ownership resorts, are proud to support Fractional Summit 2009 as Gold Sponsors. The Summit, held in association with Fractional Life, takes place on 23rd and 24th April in London at the Hilton Metropole. 

“We’re very pleased to take on a sponsorship role at this important event that once again brings together so many significant players in the fractional ownership segment of the leisure industry,” said Darren Ettridge, Interval International’s Vice President Resort Sales and Services for Europe, Middle East, and Asia. “Our Preferred Residences programme offers developers of high-end properties tremendous sales, marketing, and business development support and we look forward to sharing these benefits with attendees.” 

Ettridge continued: “We are delighted that Interval and Preferred will play a full part in this two-day event because we expect fractional ownership will be a key product in the next few years.

In addition to the sales and marketing opportunities for developers, Preferred Residences offers owners “high-touch” exchange services within a network of exclusive accommodations in many of the world’s most desirable destinations. This is coupled with year-round leisure and lifestyle benefits tailored especially for sophisticated, affluent travellers. These include preferential pricing at participating Preferred Hotel Group affiliated properties worldwide, complimentary Prestige membership in Priority Pass™ airport VIP lounge program, personal concierge services accessible 24/7 online and via phone, and complimentary annual membership in Hertz #1 Club Gold®.
       
About Preferred Residences™
Preferred Residences™ is a hospitality branded membership and exchange programme for luxury fractional resorts, private residence clubs, and condominium-style hotels.  The programme gives developers the opportunity to promote their upscale vacation residences within a network of exclusive accommodations and to deliver high-quality vacation experiences to owners of exceptional real estate. Members have access to a rich menu of benefits and services designed to enhance a sophisticated lifestyle. Preferred Residences is an alliance between Interval International, a leader in vacation ownership for more than 30 years, and the Preferred Hotel Group, Inc. representing more than 700 of the world’s finest independently owned hotels in over 75 countries.

About Interval International
Interval International operates membership programmes for vacation owners and provides value-added services to its developer clients worldwide. Based in Miami, Florida, the company has been a pioneer and innovator in serving the vacation ownership market for more than 30 years. Today, Interval has a network of over 2,400 resorts in excess of 75 countries and offers its resort clients and nearly 2 million member families high-quality products and programs through 26 offices in 16 countries. Interval is an operating segment of Interval Leisure Group, Inc. (Nasdaq:IILG), a leading global provider of membership and leisure services to the vacation industry.